I've been of the mindset that in this day and age, a dedicated gaming device is an outdated and rather money losing venture in the world of tablets and smartphones. I think people want a console experience on a console hooked up to a nice HDTV, not on a 5" display with limited battery life and overpriced, proprietary memory cards. Relying on the Indie scene isn't a great money making venture due to the fact that A: The main indie scene is on Smart Devices (which the majority of gamers already have) and B: They're often significantly cheaper on those devices. And relying on third party companies to deliver your games isn't a great strategy either. Ask Nintendo how much third party developers like to develop for a system with a small install base (7.4 million is the most recent estimate as Sony has seems embarassed to divulge the real number.)
I also don't see Remote play being a great selling feature for the majority of users. Given the awful state of broadband in the US I don't see this pulling off a great experience on the road, and why would I play my PS4 on a Vita in my own house instead of on my 48" LED TV hooked up to a 7.1 CH Onkyo Receiver? Again, let's ask Nintendo how much the "Playing without a TV" has been a selling feature.
Jim Sterling really said it right in his video that was linked to earlier in this thread (which I will repost here via Youtube) when he said that Sony does NOT know how to make a portable device. It seems to think that it can just make a device and just put it out there like a newborn child and throughum the power of Aslan just assumes that it will do well without properly supporting it or doing anything to really make it shine or stand out among the NUMEROUS other options for portable gaming. The Vita probably would be successful if it had proper first party support or for God's Sake just played all the same damn PS1/PS2 games that the PS3 and PSP can, but Sony for whatever reason seems to not want it to be truly successful. And before anyone says that the 7.4 million isn't a bad amount, consider that the PSP sold nearly 10 million in the US alone in that same amount of time, and let's not even bring in the 3DS numbers for comparison. That would be just cruel. And to be fair, the only reason the PSP did as well as it did was because it was easily hackable and thus was a major hit in Japan and in overseas markets where they would be re-purposed as portable emulation devices.